Muthoot Finance Ltd on May 25, 2022 announced its 27th series of Public Issue of secured redeemable non-convertible debentures (NCDs) of face value of Rs. 1,000 each (“Secured `NCDs”).
The base issue size is of Rs 75 crore, and there is an option to retain oversubscription up to Rs 225 crore, thereby aggregating up to a tranche limit of Rs 300 crore. The issue closes on 17 June, 2022, Muthoot Finance announced in a press release.
Muthoot Finance has also retained the option to close the issue on an earlier date or extend it as may be decided by the Board of Directors or the NCD committee, the statement added.
The secured NCDs proposed to be issued under this issue have been rated [ICRA] AA+ (Stable) by
ICRA.
The NCDs are proposed to be listed on the Bombay Stock Exchange (BSE), and the allotment will be on first come first serve basis. There are seven investment options for secured NCDs with ‘monthly’ or ‘annual’ interest payment frequency, or ‘on maturity redemption’ payments, with coupon ranging from 7.25-8 per cent annually.
George Alexander Muthoot, managing director, Muthoot Finance, said: “We have allocated 90 per cent of the issue for retail and high net worth individual (HNI) investors, who will be getting 0.50 per cent per annum more than the interest rate applicable for institutions and corporates. Moreover, interest rates have been increased by 0.25 per cent per annum in this issue compared to the previous issue.”
He further said that in this issue, investors will get the twin advantage of better rating as well as attractive interest rate.
“We also have 7-year NCD for those investors who want to lock-in the interest rates for long period, as well as reduce the uncertainty of fluctuations in interest rates in future,” he said.
The funds raised through this issue will be utilised primarily for lending activities of the company.
The lead manager to the issue is A. K. Capital Services Limited. IDBI Trusteeship Services Limited is the debenture trustee for the issue, and Link Intime India Private Limited is the registrar to the issue, the press release added.
